Monday, June 13, 2016

Confronting the Truth About Estate Planning

There are many goals of estate planning; one of which is to leave those you love in a better position than perhaps you began your life with. It means coming to the realization that one day you will no longer be alive. For many people this is a difficult realization to confront in all its ramifications.

When planning for your eventual death, the following issues will most likely arise:

•You will have mixed emotions about confronting the reality of inevitable death. When you understand that avoiding developing an estate plan will lead to your assets going to unintended beneficiaries and loss of money for your loved ones in unnecessary taxes and liabilities, perhaps that will charge you to action.

•Be sure to clearly communicate your wishes. Be sure to involve your loved ones and financial advisors. The more you clarify before your demise, the less likely there will be misunderstandings and disputes after.

•The way to communicate your wishes legally is through a will. Be sure to write one, the sooner the better. And keep it up to date whenever some change your status, or your children’s status, or any other relevant event, takes place.

•Consider establishing a living trust. This completely bypasses the entire probate process, saves on attorney’s fees, court control, contest clauses, unneeded taxes. It is private and entirely controlled by the family.